LISTEN | Make smarter financial decisions with this two-pot retirement calculator

The new two-pot retirement system is designed to keep South Africans' retirement nest eggs safe while still providing a solution for those who struggle financially due to a lack of “rainy day” funds.

From September 1, when this new system kicks in, your retirement contributions will be divided into two pots:

1. Two-thirds will go into a “retirement pot”, where the funds will grow untouched for use in your golden years.
   
   
2. The remaining one third will fill your “saving pot”, ensuring you have some breathing room should you need to access some of this money for emergencies.

While you'll be able to make a yearly withdrawal from your savings pot, doing so has long-term implications which may cause you to miss your retirement goals. One reason for this is that withdrawals have a tax impact, on both the withdrawn amount and the remaining funds. 

To help you make an informed decision before tapping into your savings pot, Old Mutual has developed an innovative two-pot retirement calculator. This handy financial planning tool allows you to discover the estimated value of your savings pot and, importantly, understand the tax implications of making a withdrawal from it.

There are two versions of this calculator, one specifically for Old Mutual customers, which is accessible via WhatsApp (0860-933-333), and one that anyone can access via the Old Mutual website.

In this podcast, Old Mutual's Qa’id Wingrove explains the difference between the two calculators and how to make the most of them. Listen to it now:

This article was sponsored by Old Mutual.